Israeli digital small business insurance company Next Insurance today announced that it has raised $250 million in a Series D financing round led by CapitalG, Alphabet's independent growth fund, with participation from FinTLV, and existing investor Munich RE Group. CapitalG Partner Sumiran Das will join the Next Insurance Board of Directors.
The financing round was completed at a $2 billion company valuation, double the valuation when Munich Re invested $250 million in Next Insurance in October 2019. Next Insurance has now raised $631 million.
Headquartered in Palo Alto, California, Next insurance's development center in Israel is in Kfar Saba. The company was founded in 2016 by CEO Guy Goldstein, CTO Alon Huri, and VP R&D Nissim Tapiro. The three founders previously founded Check, which developed an app for following the user's bank account and was sold to US company Intuit for $360 million.
Next Insurance specializes in providing digital insurance for small businesses and the self-employed in the US. Next Insurance claims that its technology-first approach cuts costs by up to 30% compared with traditional policies.
Goldstein said, ""We aspire to help businesses thrive by delivering phenomenal insurance products and experience. Insurance is a market primed for a new approach - one that believes it is a social good and cares for its customers. We believe we have the right team, the right approach and the right products to enable us to lead the shift in this industry, and we are excited to have CapitalG joining the ride."
Next Insurance has increased it workforce by 50% in 2020, and plans to hire over 200 new employees over the next 12-18 months in its offices in Palo Alto, Austin and Israel.
Next Insurance has increased its Gross Written Premiums (GWP) year-over-year by 133% and recently recorded $750,000 in GWP in a single day, a 75-fold rise in three years.
Next Insurance's commitment to being the one-stop-shop for small business insurance and a customer experience leader has helped it grow to more than 100,000 customers. Next Insurance is currently available to 1,300 types of businesses in 50 US states and provides six insurance offerings, including General Liability, Professional Liability, Commercial Auto and Workers' Compensation coverage.
CapitalG partner Sumi Das, who joins Next Insurance's board, said, "Next Insurance is modernizing insurance for small business owners - making it fast and simple to get broad, customized coverage. We believe that there is an opportunity to use technology to transform the small business insurance experience in the U.S. and build a national insurance leader. Next Insurance has the right team and capabilities to capitalize on this vision and is well on its way to doing so."
Published by Globes, Israel business news - en.globes.co.il - on September 23, 2020
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